1. The Product Is Sports and Entertainment
Chapter 7
The Product Is Sports and Entertainment
7.1 The Product Mix
7.2 Recruiting Athletes & Entertainers
7.3 Customized Entertainment
7.4 Product Marketing Strategies

2. Introduction Product Mix in Sports Marketing

3. Winning Strategies Fame and Fortune Used to Benefit Those in Real Need
Brad Pitt has used his fame to draw attention to those in need.
children with AIDS in Africa
the plight of Haitian children
global poverty conditions
helped sponsor architectural competition to rebuild part of New Orleans

4. Goals Define product mix, product extension, and product enhancement.
Lesson 7.1 The Product Mix
Goals
Define product mix, product extension, and product enhancement.
List and describe the components of the product mix.

5. WHAT IS A PRODUCT MIX? tangible parts intangible parts
physical features that can be seen and felt
i.e. Soft Red Blanket
intangible parts
nonphysical service features
i.e. Pedicure

6. Tangible & Intangible
The sport product is a complex package of the tangible and intangible as well as the experience.
E.g. GOLF
Tangible Elements of the Golf Product:
Little dimpled balls
Oversized ‘metal’ woods that are in different ways, standardized
Intangible Elements
Golf club membership

7. Product Mix Product Extensions
the total assorted features associated with the product
product line - various products offered under the brand
product packaging
brand name
Product Extensions
items added to a product to make it more attractive to the target market
guarantees
warranties
instructional CDs

8. The marketer has little control over the core product, and consequently must focus efforts on product extensions.
E.g. Real Madrid of Spain’s La Liga fashioned a strategy that leveraged the core product (soccer games) to generate product extensions. The team broke world “transfer” (purchase price) records in buying the contracts of star players (e.g. Beckham). Although Real Madrid was confident that it was going to win games, it was more confident that it would expand its global sales of merchandise and sponsorships. Even though the stars stumbled (failing to win a major trophy in 2004), strategy worked.

9. Basic vs. Enhanced Product
product enhancements
features added to the basic product that satisfy additional needs and wants with the same purchase
add value to the product and may increase the purchase price
It is important to give customers options so that products can be matched to their budgets and individual needs.

10. Provide three examples of a product enhancement.
Basic: Automobile
Enhancements: Heated Leather Seats, Sun Roof, Bose Sound System, Upgraded Engine
Basic: Athletic Shoe
Enhancements: Air-cushioned Soles, Lightweight Fabric
Basic: Stadium Seating
Enhancements: Air-conditioned Suites

11. PRODUCT MIX COMPONENTS
In an attempt to satisfy customers, marketers must make many decisions about their product and Product mix.
Product Mix
the total assorted features associated with the product
product line
product packaging
brand name

12. See Book Page 174 for further examples.
#1 ~ Product Line
product line
a group of similar products with slight variations to satisfy the different needs of consumers
Coca-Cola (Soft Drink Product Line)
Classic, Diet, Caffeine-Free, Cherry, Coke Zero, etc.
Variations in sizes
Variations in packaging
See Book Page 174 for further examples.

14. #2 ~ Packaging Product packaging components to consider include
ease of use
safety
accessibility
environmentally friendly

15. Why are the shoes yellow and black?

16. #3 ~ Brand
brand
the name, symbol, word, design, or combination of these elements that identifies a product, service, or company
represents the company’s reputation of quality, reliability, and status in the marketplace

17. CHAPTER 19
4/20/2017

18. #3 ~ Brand trademark licensed brand
the legal protection of words and symbols used by a company
makes it illegal for other companies to use the brand name.
licensed brand
a well-known name and/or symbol established by one company and sold for use by another company
Disney: sells licenses to use their characters on toys and clothing. They then receive a % of the sales from the merchandise bearing their name.

19. 5 stages of brand recognition
CHAPTER 19
4/20/2017
5 stages of brand recognition
non-recognition
unable to identify brand
- consumers don’t know or trust the brand yet
rejection
will not purchase that brand
- poor quality, recalls for safety, too pricey
recognition
know brand, but has little influence
preference
brand is valuable to consumer
- will purchase brand if readily available but may purchase another brand if it is not.
insistence
must have this brand
- rejects all other even if their preferred is not available
Page 175

20. Brand Recognition GOOGLE
Google has successfully made its brand, a household name. If you want to search for something on the internet, instead of saying, “Search it”, we now say, “Google it”.

21. Nike’s Marketing Strategy

22. Product Mix: What are the components of the product mix? product line
total assorted features associated w/ the product
product line
product packaging
brand name

23. Lesson 7.2 Recruiting Athletes and Entertainers
Goals
Define the bottom line for sports.
Explain the high cost of sports and entertainment events.

24. THE BOTTOM LINE FOR SPORTS
blue-chip athletes
excellent athletes
demonstrate good character and leadership qualities on and off the field
The bottom line for sports is winning.
The bottom line for business is profit.
Winning teams generate profit.

25. NCAA Regulations NCAA National Collegiate Athletic Association
a voluntary organization through which the nation’s colleges /universities govern their athletic programs
Over 1,250 institutions, conferences, organizations
Committed to the best interests, education & athletic participation of the student athletes

26. NCAA Regulations Recruitment Violations: NCAA Punishments:
paying recruits bribes,
giving incentives recruit families,
altering transcripts
NCAA Punishments:
Limiting scholarships offered
prohibiting post-season play
suspending players
forfeiting games
and even shutting down entire programs.

27. Compensation for Athletes?
Athletes receive scholarships and grants for their college education.
After signing with an agent, a college athlete can no longer participate in college sports.
In some states, proposals have been brought to the legislature to pay college athletes.

28. What is the bottom line for sports and how is it related to the bottom line for business?
The bottom line for sports is winning.
The bottom line for business is profit.
Winning teams generate profit.

29. THE COST OF SUCCESS Success requires skilled coaches top-notch players
popular entertainers

30. Attracting and Keeping Coaches
The best coaches can command annual salaries in excess of $1 million.
Success = large bonuses, salary increases, etc.
fringe benefits
incentives received in addition to base salary
~ Medical Insurance ~ Endorsements
~ Company Cars ~ Radio Shows
~ Paid Travel ~ Extra Income Opps

31. Attracting and Keeping Star Athletes
Competition for top athletes is fierce.
Recruiters compete w/ professional & college teams.
Recruiters need a well refined sales and marketing effort to attract talent to their schools. (Personal Selling, Financing, & Marketing Info Management)
Convincing while upholding honesty & integrity.
Economic Concept
Supply for Top Athletes Limited
Demand for them is High.

32. Getting a Top Athlete for NY Jets

33. The Price for Top Musicians and Other Entertainers
Popular performers can attract large enough crowds to make an event profitable.
Requires legal contracts and large budgets.
Popular celebrities help increase the advertising revenue of their TV shows.
Requires larger salaries for more popular stars

34. Marketing Women’s Sports
Women’s sports are seriously neglected
U.S. Women’s Soccer Team won the World Cup in 1991 and barely made the news.
They received more exposure in due to their continued success since 1991.

35. Why do Women’s Sports Get Less Attention?

36. Marketing Women’s Sports
Relative to male counterparts, women athletes receive far less pay.
More money and exposure of the male sports means more fans. Fan support = profit.
Creative marketers may develop new products to appeal to females who are relatively new sports fans.

37. Why is it important for young, talented, and highly sought-after athletes to hire trustworthy agents to represent them?
Unscrupulous (crooked) agents and recruiters may take unfair advantage of poorly informed athletes. They need trustworthy agents who will look out for their best interests and negotiate a fair deal.

38. Lesson 7.3 Customized Entertainment
Goals
Define customizing.
Describe the financial impact of Baby Boomers on the entertainment industry.

39. CUSTOMIZING PRODUCTS customizing impromptu
changing a product to fit the needs or wants of a particular market
impromptu
spontaneous and changing
Example: comedian altering their act based on audience reaction and participation

40. Local TV American Style
Product planning for the majority of national network TV shows take place in L.A.
Expensive and require large audiences to attract advertisers to cover the production costs.
Local programming is less expensive to produce, but has fallen out of favor with major networks.
Does not attract enough viewers to draw in advertisers.

41. Children’s Programming
Used to be produced locally and developed specifically for the children in that area.
Had large impact on children, so parents requested that hosts not endorse products.
So, advertisers lost interest in sponsoring locally produced children’s shows.

42. Sports Programming tiering
Sports broadcasted local until Cable changed the distribution system drastically.
National Broadcast, Pay-Per-Views, etc.
Excessive salaries of sports figures have helped drive up the costs of television coverage of sporting events.
tiering
specific sports programs will be offered outside the basic cable or satellite package
consumers choose their level of service/channels

43. Public TV and Radio
Public TV and Radio are viewer- and listener-supported.
Mission: entertain and educate audience
Usually non-profits financed through grants, corporate donations and listener contributions
programming is tailored to local audiences
know their audiences & work to please them

44. Why is different TV programming shown in different cities or regions of the United States?
Programming is customized for the audience.
San Fran Giants (West) vs. Boston Red Sox (East)
49ers (West) vs. Eagles (East)

45. Who are the Baby Boomers?
Baby boomers are a huge group of Americans who have affected the nation’s social, political, and economic life from the day they were born.
The birthrate in this country jumped after World War II and stayed high up until the mid-1960s, directly related to both the hordes of soldiers, sailors, and marines returning from their service in World War II, and a booming economy that encouraged family-making and children.
The result was a very large number of children born between 1946 and 1964 who have had an impact on society at each stage of their lives. Now, as boomers have reached at least the 50-year mark and as the oldest have moved past age 65, boomers will continue to have a dramatic effect on many aspects of American life in the years to come.

46. MARKETING TO BABY BOOMERS
Baby Boomers, born between 1946 and 1964, are one of the best-known market segments. (over 76 million)
What are they buying???
1946: Baby Formula and Clothing
2012: Leisure/Retirement activities

47. Boomers Won’t Retire
Baby Boomers are softening the line between career and retirement
Many will work beyond retirement age
Enjoy recreational activities and entertainment
And have the discretionary income to pay for the products and services they desire.

48. Segmenting the Group The U.S. population is aging.
Marketers will need to focus their efforts on this aging market.
Customer preferences
Spending habits
Incomes
Occupations
Area of residence
Census ~ Average Age
1994 – 34
2000 – 35.5
2035 – 39.1

49. Entertaining the Boomers
Baby Boomers are finding more time to “Go Out” & increased their movie attendance.
Reel Source – attendance tracker company
Baby Boomers = 1/3 of movie attendance
Movie Producers noticed!
Filling niche for Baby Boomers’ tastes
Use actors in their age range to increase popularity

50. Understanding All Parts of the Group
Through 2002, Baby Boomers will continue to be a major target of entertainment marketing.
As the Boomer group is so large, marketing messages need to be developed for specific subgroups of Boomers.
Fine-tuned for each age group
HUGE potential customer base

51. Why are Baby Boomers important to entertainment marketers?
Baby Boomers are important because there are so many of them and they have a large amount of disposable income to spend.

52. Lesson 7.4 Product Marketing Strategies
Goals
List and describe the stages of the product life cycle.
Explain how products are positioned in the marketplace.

53. THE PRODUCT LIFE CYCLE introduction growth maturity decline
product life cycle (Described over next 4 slides…)
introduction
growth
maturity
decline

54. Introduction Stage skimming price strategy penetration price strategy
product is a novelty, only one of it’s kind
only one brand of product is available
skimming price strategy
introduces new products at a very high price
quality & uniqueness justify high price
higher profits encourages more competition
penetration price strategy
uses low pricing to help capture a large market share early
Establish a customer base
Lower prices discourage the competition

55. Growth Stage Sales of a product and profits increase
Target market knows of and purchases the product regularly
Advertising focuses on customer satisfaction
Competition increases (alternate products)
Products modified/improved to maintain customer loyal

56. The Maturity Stage Sales are level or slowing down
Target market already purchased product
Marketing costs increase, more promotions due to more competition
Commercials mention/mimic competitors
Sale prices offered to hold off competition

57. The Decline Stage (Pages 190-191)
sales decrease
may no longer generate enough revenue to justify marketing costs
alternatives include:
drop a product
regionalize
sell/license
modernize/alter
discount
recommit

58. Decline Stage Options drop product: cut company losses, cut completely
sell/license: minimize losses, sell or license to another company
discount: reduce prices to sell remains faster
regionalize: commit to geographical location where product is most popular and profitable
modernize/alter: “NEW” and/or “Improved”
recommit: a new purpose found for the product

59. What are the stages of the product life cycle?
Introduction
Growth
Maturity
Decline

60. Product Life Cycle Examples

61. POSITIONING A PRODUCT positioning
used by a company to differentiate its products or services from its competitors’ products or services
status, price, brand recognition & other factors

63. POSITIONING A PRODUCT Positioning Example Honda: safe family car
Commercial focuses on family use, safety awards
BMW: luxury sports car
Commercial focuses on looking fast, expensive
Both provide means of transportation.
Both positioned very differently

65. List three ways a product may be positioned in the marketplace.
Status
Quality
Price
Features
Brand recognition
Benefits